In Its First Year of Operations, Bronfren Corporation Produced 800,000

question 146

Multiple Choice

In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under the following costing methods if Bronfren had produced 20,000 fewer sets? (Assume that Bronfren has both variable and fixed production costs.)

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Transferor's Warranties

Guarantees made by a seller (transferor) to a buyer about the condition, legality, and ownership status of the goods or property being sold.

Presenter's Warranties

Guarantees made by the presenter of a negotiable instrument, such as a check, regarding its legitimacy and their authority to present it.

Implied Warranties

Legal guarantees assumed in a transaction, suggesting that a product will meet certain standards even if not explicitly stated.

Discharged From Liability

A situation or legal process wherein an individual or entity is released from a responsibility, duty, or debt, absolving them from further obligations.